The cost of insuring against a catastrophic US default jumped to its highest level in more than two years today after talks to prevent a breach of the nation’s $16.7 trillion (£10.5 trillion) debt ceiling faltered.

Talks to decide the future of US involvement in Afghanistan continued last night, amid tensions over a "military operation" in which American forces "forcibly removed" a senior Taliban commander from an Afghan government convoy.

Global stock markets drifted Wednesday as news the Federal Reserve's vice chair will be nominated to head the US central bank gave only a slight lift to investor sentiment darkened by an IMF warning on the global economy.

US Secretary of State John Kerry is in Brunei for meetings with top officials from China and its smaller Southeast Asian neighbours, in which he will urge all countries to cool tensions over territorial disputes in the South China Sea.